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Strategies / Momentum / Stochastic Reversal With RSI Alert

Stochastic Reversal With RSI Alert

The strategy buys at market when the stochastic reversal state is bullish and the scaled 13-period RSI is above -10, and sells short when both are bearish with the reading at or below -10. Positions close when the two states disagree.

MomentumLong & shortSwingSilver4 hours
n/aProfit factor
30,208Net profit USD
23.44%Win rate
1,685Trades
-15,407Max drawdown
17.93Avg trade

Best run of 6. Silver, 4 hours, spread 2, from run sweeps:2026-10-11-SILVER-4h-opt.tsv:26.

Entry rules, long

  2. The RSI alert state turns bullish when scaled RSI(13) (RSI minus 50, times 1.5) is above -10, and bearish when it is -10 or lower.
  3. A long opens at market when both states are bullish and no long position is open.

Entry rules, short

  2. The RSI alert state turns bearish when scaled RSI(13) is -10 or lower and bullish when above -10.
  3. A short opens at market when both states are bearish and no short position is open.

Exit rules

  2. An open short closes at market when the two states are no longer both bearish.

Test conditions

PeriodUp to 2026-10-11
InstrumentSilver, 4 hours
Spread2 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run4 hoursn/a 1,68523.4430,208 USD-15,407
USD/JPYDailyn/a 72627.822,288,660 USD-677,850
Nikkei 225Dailyn/a 62228.6221,040 USD-17,337
Brent CrudeDailyn/a 27729.2413,793 EUR-11,230
GoldDailyn/a 78326.951,750 EUR-1,145
Gold4 hoursn/a 1,63425.641,222 EUR-876

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With RSI Alert
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE posrh = 0

ll = lowest[14](low)
hh = highest[14](high)

49 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

StochasticRSISMA
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 15,407 USD is large next to the net profit of 30,208 USD.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Stochastic Reversal With RSI Alert in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 6 market and timeframe combinations. The best run by trade count was Silver, 4 hours, with 1,685 trades.

How large was the drawdown?

The best run had a maximum drawdown of 15,407 USD at the tested position size, against a net result of 30,208 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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Trend Surfer

Uses the same indicator.

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SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 trades

ATR Momentum

Also a momentum strategy.

n/a PF · 15,021 trades

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs